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An employer can exclude which of the following employees from coverage under a qualified plan? (A) Employees with 1,250 hours
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Answer #1

The answer is (D) – employees who have worked less than 1 year.

Section 410(a)(1) of the Internal Revenue Code (Code) sets forth the minimum age and service requirements for a qualified retirement plan. In general, a plan cannot require, as a condition of participation, that an employee complete a period of service with the employer extending beyond the later of:

  1. the date on which the employee attains age 21; or
  2. the date on which the employee completes one year of service.
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